Survey Conducted by South Korean Authorities Finds Exchanges Failed Privacy Tests

The South Korean Communications Commission has once again looked into the cryptocurrency market. This time the regulator decided to conduct a survey with the purpose to see how well privacy protection measures function.

The survey was made on the major cryptocurrency exchanges functioning in the country. Of course, the results were not as good as everyone expected. In fact, the commission found that the exchanges lacked proper privacy measures and had insufficient consumer data protection. The authority decided to impose sanctions against eight of the exchanges investigated.

The exchanges which failed to meet the desired privacy systems have a total of 30 days to make significant improvements to their systems, local media reported.  

Task force to oversee cryptocurrency exchanges

The fact that authorities have been looking into the way cryptocurrency exchanges function was also proven by a recent decision coming from South Korea, which actually created a new task force to oversee exchanges.

The Korean Financial Intelligence Unit in collaboration with the country's financial authorities decided to create a so-called task force with the main purpose to oversee cryptocurrency exchanges. The task force will also be responsible with both overseeing the activity of cryptocurrency exchanges and ensuring that they are compliant with the current laws.

Of course, the new task force will also work with the exchanges operating in the country. The main purpose of the new task force, the Korea Financial Intelligence Unit (KFIU) said, is to make sure that the cryptocurrency market is not associated to illegal activities such as money laundering or fraud.

The six biggest banks in the country, which accept cryptocurrency accounts, will also have to immediately report to authorities in case they discover any activities that might be suspicious.